Meghmani Organics (MOL) on November 16 announced that it will enter into new and lucrative variant of White Pigment Titanium Dioxide (TiO2). The Company will set up 33,000 metric tons production facility at a total capex of Rs 4 billion at Dahej, the chemical hub of Gujarat.

Titanium Dioxide (TiO2) has application as a bright white pigment in various industries including Paint, Coating, Plastic, Ink, Dyes, Paper and Cosmetics etc.

The aforesaid project is expected to be commissioned by Q1 FY24 adding Rs 7 billion to MOL’s topline on a full financial year basis. The Company eyes an EBITDA margin of 25% with robust return ratios i.e ROCE and ROE of 20%+ each. The new project will be funded by an appropriate mix of internal accruals and debt.

India’s annual demand for Titanium Dioxide (TiO2) is pegged at 2,50,000 MTPA growing at 4.2% CAGR. India imports 80% of the Titanium Dioxide (TiO2) demand. India’s Titanium Dioxide (TiO2) production capacity stands at 81,000 MTPA.

Commenting on Meghmani Organics entry into Titanium Dioxide (TiO2), Ankit Patel, Chief Executive Officer, Meghmani Organics said, "The Company has strengthened its value added proposition of its Pigments Division with its entry into White Pigment Titanium Dioxide (TiO2). Meghmani Organics foray into Titanium Dioxide (TiO2) is in line with the Company’s endeavour of creating sustainable growth in Pigment Division beyond Phthalocyanine Pigment Blue and Green. The project is poised to be the largest plant in India. Titanium Dioxide (TiO2) is an import substitution product aligning to the Government’s ‘Make in India’ and 'Atmanirbhar Bharat' vision."

Shares of the company gained Rs 1.80, or 1.96%, to settle  at  Rs 93.65.  The total volume of shares traded  was 204,560 at  the BSE (Tuesday).